Paper 2 · Process costing
In Process I of Shaba Limited, 5,000 litres of direct material were input and normal loss is 20% of input. The actual output from Process I for the quarter was 3,800 litres. Calculate the abnormal loss in litres.
Model answer
200
Also accepted: 200 litres
Explanation: Expected output = Input 5,000 litres − Normal loss (20% × 5,000 = 1,000 litres) = 4,000 litres. Abnormal loss = Expected output 4,000 − Actual output 3,800 = 200 litres.
Derived from ZIMSEC Accounting Paper 2, June 2018, Q3
